Match the Commitment, the Receipt and the Bill
An invoice is a request for payment. A delivery slip describes what a supplier says it sent. A receipt record states what your team actually checked. None automatically proves the others correct. Compare them against the authorized order and actual terms, and resolve a discrepancy promptly through the people who can decide it.
This worked case continues the fictional 40-box supplier comparison. It teaches a record trail, not a universal right to withhold payment. Real payment deadlines, dispute routes and rights come from the applicable contract and law, checked by the responsible owner.
Read the Fictional Terms First
Purchase order PO-04 buys 40 complete boxes at 20 USD each, no delivery charge and a 10% nonrecoverable tax on goods. Total: 800 + 80 = 880 USD. For this exercise only, the agreed terms permit invoicing of quantities delivered and accepted, require discrepancies to be notified promptly, and make a correct invoice payable within 30 calendar days of receipt. A disputed quantity follows the stated contract route; this example does not assume that every real agreement has these terms.
The supplier's delivery slip says 40 boxes and its invoice requests 880 USD. The receiving staff count 38 boxes physically present: 36 acceptable, two with cracked lids, and two missing from the order. The team has not accepted the two damaged units. Its dated record separates possession from acceptance; there is no basis to record all 40 accepted.
Make a Matching Record
| Item | Order | Checked Receipt | Invoice | Action |
|---|---|---|---|---|
| Complete acceptable boxes | 40 at 20 USD | 36 accepted | 40 billed | Notify the contract owner and supplier of the quantity mismatch |
| Damaged units | Complete matching lids required | Two physically present; not accepted | Included in 40 | Record condition and agree remedy under the terms; retain custody/return trail |
| Missing units | 40 ordered | Two not delivered | Included in 40 | Request delivery evidence or replacement plan; do not mark received |
| Tax | 10% in this fictional order | Based on the correctly billed amount | 80 USD | Finance checks any corrected invoice/credit and tax treatment |
Record order, slip, invoice and receipt references; date and checker; quantities/condition; available permitted evidence; supplier communication; decision owner; next action and deadline. Photographs may support a damage record when permitted, but should not expose people or sensitive contents. Keep originals and corrections distinguishable. Do not backdate a new receipt or erase the original discrepancy.
Work Through the Amounts
For 36 accepted units: 36 × 20 = 720 USD, plus 72 tax, totaling 792 USD. The unresolved four units are 80 plus 8 tax, totaling 88 USD. Together 792 + 88 = 880. The four unresolved units comprise two damaged and two missing, not four physically absent units.
Under the supplied fictional terms, the buyer asks for a corrected 36-unit invoice or the appropriate credit mechanism, while the contract owner agrees a remedy for the other four units. The payment reviewer may mark the unmatched 88 USD pending that resolution under those terms. Do not silently hold the entire bill or miss the valid undisputed payment deadline. Finance records the liability and dispute status according to its actual accounting rules rather than treating a payment hold as erasing a debt.
If the real contract requires advance payment or has different acceptance/dispute provisions, this arithmetic alone does not establish what may be paid or withheld. Escalate to the authorized finance/contract owner before the deadline. A standard three-way check cannot override a contractual duty.
Close the Trail When a Remedy Arrives
Suppose the supplier confirms an 88 USD correction and later supplies four replacement/missing units. The receiver checks those four against PO-04, records how the two damaged units were returned or otherwise handled, and confirms acceptance only for compliant goods. Finance matches the later invoice to that new receipt and reconciles the earlier correction. Total accepted quantity must reconcile to 40, without paying twice for replacements.
If the supplier disputes the count or condition, preserve both accounts and follow the agreed dispute route. A discrepancy is a reason to investigate, not proof of fraud. Separately report a suspected integrity issue through the proper channel when the facts warrant it.
Keep an Independent Check in a Small Team
Where one staff member requests and receives goods, arrange the policy's specified independent review of the order, receipt, invoice and discrepancy before payment. Name what the reviewer checks and record it. Two names on a form do not demonstrate independence if both simply repeat the supplier's slip.
Source and Scope
Charity Commission CC8, updated November 27, 2024, section 6.1, addresses written authority, matching invoices with orders/receipts and timely payment in England and Wales. It does not determine the payment rights in this case. The fictional terms, quantities, matching record and remedy are original teaching material. See the procurement policy draft for organization-selected controls.